Countries a and B Start Out with Real GDP Equal

question 116

Multiple Choice

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country A's level of real GDP after 3 years?

• A)$1,000
• B)$1,050
• C)$1,158
• D)$1,500
• E)$2,500

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Definitions:

Unadjusted Trial Balance

A list of all the general ledger accounts and their balances at a specific point in time, before any adjustments are made.

Income Summary

An account used in the closing process that aggregates all revenues and expenses to determine the net income or loss for a specific period before transferring the balance to the retained earnings.

Retained Earnings

The portion of net income that is kept by the company rather than distributed to its shareholders as dividends.

Revenue

Cumulative income generated through the primary business functions of a company, involving the transaction of goods or services.